HomeMy WebLinkAboutcover memoCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO : Honorable Mayor and
Members of the City Co rW; fission
FROM : Joe Arriola
Chief Administrator/Ci nager
DATE :
SEP 10 2004
FILE :
SUBJECT :
Resolution — Energy Performance Agreement
with Florida Power and Light for Energy
Performance Savings Services
REFERENCES:
ENCLOSURES:
RECOMMENDATION
It is respectfully recommended that the City Commission adopt the attached resolution, authorizing
the City Manager to execute an agreement with the Florida Power and Light Company (FPL) for
Energy Performance Savings Services, for an initial ten-year period with the option to extend for one
additional five-year period.
BACKGROUND
On March 27, 2003 the City Commission approved Resolution No. 03-250, authorizing the City
Manager to negotiate a Professional Services Agreement with Florida Power and Light, the top -
ranked firm in response to RFC) No. 01-02-224. In addition, Resolution No. 03-250 directed the City
Manager to present the negotiated Agreement to the City Commission for consideration.
Subject to the terms and conditions of the Agreement, FPL. will conduct energy audits at facilities
selected by City Staff and identify candidate energy -saving projects. The project candidate would be
Implemented utilizing a comprehensive performance contacting approach, including but not limited
to, energy audits, energy co. t monitoring, project financing, and a guarantee that the total program
costs will be 100% covered by program energy and operational savings.
The projects Identified by the feasibility studies initiated under this Agreement will be subject to
Section 489.145 of the Florida Statutes, also known as the "Guaranteed Energy Performance
Savings Contracting Act".
The State of Florida determined that investment in energy conservation measures in public facilities
can reduce the amount of energy consumed and produce immediate and long-term savings. It is the
policy of the State of Florida to encourage agencies to invest in energy conservation measures that
reduce energy consumption, produce a cost savings for the agency (municipality), and improve the
quality of indoor air in public facilities and to operate, maintain, and when economically feasible, build
or renovate existing agency facilities in such a manner as to minimize energy consumption and
maximize energy savings.
FISCAL IMPACT
This avoids the need to utilize limited capital resources and ideally result in a net energy expense
reduction after finance costs are paid in accordance to State Statutes, and the Agreement. FPL is
contractually obligated to guarantee the net savings.
JA/MH J C/fl/cjp